Payroll Calculation Example for New Joiner, Resignation, Promotion

New Joiner Payroll Calculation

• The system computes the salary for New Joiners based on Calendar Days, according to the actual number of days worked in the month.

  Salary is prorated using:

  Salary= (Basic Salary / Work Days/Month) * Actual Days Worked

1. Scenario 1: End of Month Cut-Off
   1. Cut Off Date: End of Month
   2. Payment Schedule: Once a Month
   3. Employment Start Date: 8/09/2025
   4. Basic Salary: RM 4,000
   5. Work Day/Month: 26 Days

      • September has 30 days

        Days Worked: 30-8+1 = 23 Days

        Salary Calculation: RM 4,000/26 * 23 days = RM 3,538.46

2. Scenario 2: 26th Cut-Off (Cross Month)
   1. Cut Off Date: 26th
   2. Payment Schedule: Once a Month
   3. Employment Start Date: 8/09/2025
   4. Basic Salary: RM 4,000
   5. Work Days/Month: 26 Days

      • Pay Period: 27/08/2025 - 26/09/2025

        Days Worked: 26 - 8 + 1 + 19 Days

        Salary Calculation: RM 4, 000/26 *19 days + RM 2,923.08

Resigned Employee Payroll Calculation

The system computes the prorated salary for a resigned employee based on Calendar Days, according to the actual days worked within the month or pay period.  

1. Scenario 1: End of the Month Cut Off
   1. Cut Off Date: End of Month
   2. Payment Schedule: Once a Month
   3. Employment End Date: 08/09/2025
   4. Basic Salary: RM 4,000
   5. Work Days/Month: 26 Days
      • Days Worked: 8 Days
      • Salary Calculation: RM 4,000/26 * 8 days = RM 1,230.77
2. Scenario 2: 26th Cut-Off (Cross Month)
   1. Cut Off Date: 26th
   2. Payment Schedule: Once a Month
   3. Employment End Date: 08/09/2025
   4. Basic Salary: RM 4,000
   5. Work Days/Month: 26 Days
      • Pay Period: 27/08/2025 - 26/09/2025

      • Days Worked:

        August: 31- 27= 5 Days

        September: 8 Days

        Total Days Worked: 8 + 4 =13 Days

      • Salary Calculation: RM 4,000/ 26 * 12 Days = RM 2,000

Promotion/Pay Increment Salary Calculation

• When an employee receives a Salary Adjustment during the month the system prorates the salary based on the effective date provided in the Employment Contract.
• Salary will be split into two parts under Related tab: Salary at Previous Rate and Salary at New Adjusted Rate.

1. Scenario 1: End Of the Month Cut-Off
   1. Cut Off Date: End of Month
   2. Payment Schedule: Once a Month
   3. Previous Contract Rate: RM 4, 000
   4. Revised Contract Rate: RM 4, 800
   5. Revised Rate Effective Date: 12/09/2025
   6. Work Days/Month: 26 Days

      1. Period under Previous Contract Rate:

         1/09/2025 - 11/09/2025 = 11 Days

         RM 4,000/26 * 11 Days = RM 1,692.31

      2. Period under New Contract Rate:

         12/09/2025 - 30/09/2025 = 14 Days (26-12+1)

         RM 4,800/26 * 14 Days = RM 2,769.23

      3. Total Salary:

         RM 1,692.31 + RM 2,769.23 = RM 4,461.54

2. Scenario 2: 26th Cut-Off (Cross Month)
   1. Cut Off Date: 26th
   2. Payment Schedule: Once a Month
   3. Previous Contract Rate: RM 4, 000
   4. Revised Contract Rate: RM 4,800
   5. Revised Rate Effective Date: 12/09/2025
   6. Work Days/Month: 26 Days

      1. Period under Previous Contract Rate:

         27/08/2025 - 11/09/2025 = 16 days

         RM 4,000/26 * 16 days = RM 2,461.54

      2. Period under New Contract Rate:

         12/09/2025 - 26/09/2025 = 10 days

         RM 4,800/26 * 10 days = RM 1,846.15

      3. Total Salary:

         RM 2,461.54 + RM 1,846.15 = RM 4,307.69